It’s the time of year when a flurry of employment law changes hit the business world. We know that the ongoing impact of coronavirus is consuming for all of us however, employment law changes continue to be rolled out and there are some important issues that businesses should be taking note of:
Written statements of terms and conditions
Currently, you must give employees a statement of terms and conditions within 2 months of employing them. From 6th April 2020, the right to a statement of terms and conditions no longer requires a minimum length of service and applies from the worker’s first working day (and this includes any casual and zero hours workers) This means that you must provide this information no later than an individual’s start date.
There has been a lot of activity encouraging employers to update all existing contracts (at a cost of £100’s to your business) but, you don't need to re-issue contracts for those already working for you before 6 April 2020.
Parental bereavement leave and pay
Increase to NMW and NLW rates
There are the usual annual increases to the national minimum wage, and you must ensure that you are paying your employees in line with the amended rates.
On 1st April 2020 the national living wage for workers aged 25 and over increases to £8.72 per hour.
Other national minimum wage rates also increase on this date, with hourly rates rising to £8.20 for workers aged 21 to 24, to £6.45 for workers aged 18 to 20 and to £4.55 for workers aged 16 or 17.
If you do pay in line with minimum wage ensure that you have reviewed your pay scales before April payroll.
Annual increased to statutory payments for maternity, paternity, adoption, shared parental & sick pay
The weekly rate of statutory maternity, paternity, adoption and shared parental pay increases to £151.20 from 5th April 2020.
If you reference any of these payments in your policies or employee handbook, ensure that they are updated accordingly.
Adjusted holiday pay calculations for workers with irregular hours
On 6th April 2020, the holiday pay reference period for workers without normal working hours increases from 12 weeks to 52 weeks.
Therefore if you have workers with irregular working hours (e.g. those in seasonal roles) you will need to adjust how you are calculating holiday pay. Your annual leave policy may also require adjusting if it refers to the holiday pay reference period.
Equal pay for agency workers
On 6th April 2020 the “Swedish derogation” was abolished removing the ability for employers to pay agency workers less than their own workers where an agency worker has completed a 12-week qualifying period.
In addition, all agency workers will be entitled to a key information document which clearly sets out their employment relationships and terms and conditions with their agency.
Lowered thresholds for the requirement to inform and consult employees
Currently the law requires that employers with 50 or more employees must set up an information and consultation arrangement if 10% of the workforce request it. This will be lowered to 2%.
And finally…what's not happening in April - Off payroll working (IR35) & Gender pay reporting